Training for landlords, from the ground floor up

MIKE Butler, originally a full-time police detective, discovered real estate investment and was able to retire from the force.

A self-described graduate of the school of hard knocks, he wrote a book that tackles issues including how to find the best property for your personality, and screening and keeping long-term tenants.

Sprinkled with personal stories from the trenches, the book covers the basics for landlords in a style that is easy to read and digest.

The book is organized into two sections, with the initial eight chapters dealing with the basics of what he calls “autopilot landlording” -- the ability to own property and manage it without muss or fuss.

Starting with the financial aspects, Butler focuses on setting solid goals for defining and achieving a desired monthly income. Tax advantages to owning property, including depreciation and expense write-offs against income, are also detailed.

Butler warns that being ignorant of landlord-tenant law could result in serious consequences. Having been thrown off course when he first had to evict a tenant, he stresses the importance of knowing the laws that apply to property ownership and rental management and investment. Butler, aware that liability and asset protection are vital to ownership, shares a list of “fatal mistakes” to avoid, which was developed by his real estate attorney, Harry Borders.

The second part of the book covers his “proven ways to capture high-quality lifetime tenants” with 16 short chapters. Butler gets down to the daily nuts and bolts of property ownership and management, including advertising, responding to repair requests and applicant screening. The author, with an eye on the budget, lists available software that organizes paperwork, including application forms and a move-out checklist.

Reaching into his toolbox of tips, Butler reminds investors to keep a computer and pager handy, along with an ample supply of forms. Lining up professional painters, plumbers and contractors is a must. Butler suggests keeping an excellent accountant and attorney on hand to handle the finer tax and legal details.

Overall, the book offers a cautious, hands-on approach presented in a well-organized, professional package. Or as Butler aptly says in the subtitle, a “simple, no-brainer system for higher profits and fewer headaches.”

Although “autopiloting” isn’t for everyone, the basic concept of finding and keeping long-term tenants provides a sound business strategy for many investors.